Treasury borrows 46.3 billion TL with two bonds

The Ministry of Treasury and Finance continued its May domestic borrowing program with two bonds. The Ministry borrowed a total of 22.8 billion lira in the re-issuance auctions of a 4-year fixed-coupon government bond with a 15.54 percent coupon paid every 6 months, and a 7-year floating-rate government bond with a coupon paid every 6 months.

In the auction for the 4-year fixed-income bond, a net sale of 18.9 billion lira was realized against 49.6 billion lira in bids. The compound yield on this bond was 31.97 percent.

In the auction for the 7-year floating-rate bond, a net sale of 3.88 billion lira was realized against 7.43 billion lira in bids. The periodic yield on this bond was 23.16 percent.

The Treasury borrowed a total of 23.5 billion lira in the two bonds prior to the auctions. Before the auction of the 4-year fixed-income bond, 15 billion lira was sold against 38 billion lira in bids from market makers.

Before the auction of the 7-year floating-rate bond, 3.5 billion lira was sold against 6.03 billion lira in bids from market makers. In this bond, 2.5 billion lira was sold to the public sector.

News Source: 12punto